Decision Tree

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Definition

Credit Scorecards based on Decision Trees are a type of credit scoring model in widespread use to support Credit Decisioning in various Consumer Finance and SME Lending businesses.

This entry serves as the Abstract Risk Model specification of a Decision Tree Scorecard

Model Context

Model Classification

Model Description

Recursive Partitioning Approach

Decision Tree

Contents

Definition

Model Context

Model Classification

Model Description

Response Variable

Explanatory Variables

Model Parameters

Model Estimation

Stylized Model Assumptions

See Also